As some of you may already be aware we have been investigating and helping companies claim money back against ReachLocal UK. Reachlocal UK have been reselling Google Adwords to UK SMB’s since around 2009.

We have around 100 clients that we are working on behalf of. Part of our role is to report on how much money ReachLocal used on Adwords and how much they kept back for themselves. The latest report we have done is pretty damning.

This particular client spent £214,000 with ReachLocal over a total of 4 years. The amount actually spent on Google Adwords was £77,000. This is easily the worse margin we have seen yet. How any company can charge a whopping 68% plus management fees is beyond us, especially when they were led to believe that all the money would be spent on Adwords.

Amazingly Google, who have guidelines in place to stop this happen appear to be allowing this to happen. We have seen countless complaints not just to us about Reachlocal and so far nothing seems to have been done by Google.

We have been in touch with Google Compliance team but as of yet we don’t have a name, just a random email from an unknown person !